Interstate Bakeries delays annual report

Interstate Bakeries Corp., the bankrupt maker of Hostess Twinkies and Wonder Bread, won't submit an annual report until at least August while it reviews how it accounts for pensions.

The company, which filed for bankruptcy protection in September, doesn't expect to file its Form 10-K with the U.S. Securities and Exchange Commission for the year ended May 29 until the company finishes the review and completes an audit of fiscal 2005 financial statements, Interstate said Wednesday.

Interstate, based in Kansas City, Mo., said in January that the SEC had opened a formal investigation into its accounting for workers' compensation and other reserves.

"They've done a complete audit and review of the company," said Interstate spokeswoman Sandra Sternberg. "As that's occurred, new information is coming to light."

Shares of Interstate fell 3 cents to close at $5.77 Wednesday in over-the-counter trading. The stock has fallen 52 percent in the past year. Interstate was delisted from the Nasdaq Stock Market in November.

Interstate, which has operations in Salt Lake City and Ogden, said it contributes on behalf of about 900 workers to a benefit plan that several unaffiliated employers pay into.

An exemption was granted before Interstate became a contributor in 1989, making it difficult for the company to obtain information it needs to handle accounting as a single- employer plan.

The company also said it understated workers' compensation and other liability reserves for fiscal 2004 and the first quarter of 2005. The company might need to increase its reserves by $5 million.

Based on the review, preliminary financial information for fiscal 2004, the first quarter of fiscal 2005 and prior statements may require correcting or restating, Interstate said. The company said its earnings could be negatively affected as a result of pension- plan accounting changes.

The company, the largest U.S. wholesale baker, also said it will have an $8 million cost in fiscal 2005 to write down the value of some old equipment.

Interstate said it doesn't know when it will file quarterly financial statements for the periods ended Aug. 21, 2004; Nov. 13, 2004; and March 5, 2005; and amended reports for the quarters ended Nov. 15, 2003, and March 6, 2004.

Interstate hasn't filed a quarterly earnings statement since April 2004. The company said fiscal 2005 reports probably would have costs for asset impairment.

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